IFR Asia – March 24, 2018

SYNDICATED LOANS

› TOP GLOVE SIGNS BUY LOAN

TOP GLOVE has signed its US$310m loan
with eight lenders to fund its proposed
acquisition of a surgical glove maker,
according to sources and a company
statement.
Citigroup was the sole coordinating
and underwriting bank for the debut
acquisition financing, while Bangkok Bank,
Bank of China, BNP Paribas Malaysia, Hong
Leong Bank, Mizuho Bank Malaysia, MUFG
Malaysia, Sumitomo Mitsui Banking Corp
Malaysia are lenders to the facility. Signing
was on March 16.
Funds are to finance the cash
consideration for Top Glove’s M$1.37bn
(US$345m) purchase of Malaysian peer
Aspion from Adventa Capital.
The acquisition will make Top Glove one
of the world’s largest surgical glove makers,
on top of being the largest rubber glove
maker globally.
Besides the borrowing, Kuala Lumpur
and Singapore-listed Top Glove is also
issuing 20.5m new shares on the Malaysian
stock exchange at M$6.6813 each to finance
the acquisition, the company said in early
January.

The US$310m loan is split equally into a

two-year conventional term loan and a five-

year Islamic financing.

The conventional facility carries a bullet

maturity and an interest margin of 82.5bp

over Libor for the first 12 months before

stepping up to 132.5bp from the 13th

month. The blended interest margin is

107.5bp over Libor.

The Islamic tranche has an amortising

repayment with an average life of 3.5 years

and a profit rate of 125bp over Libor.

Banks joining as mandated lead arrangers

and bookrunners were offered upfront fees

of 20bp on the conventional portion and

30bp on the Islamic piece for all-in pricing

of 117.5bp and 133.57bp, respectively.

Hong Leong Investment Bank is

transaction and principal adviser for Top

Glove, while Credit Suisse is the sole

financial adviser for Adventa Capital.

› BBCCD MAKES M$770M DEBUT

BUKIT BINTANG CITY CENTRE DEVELOPMENT, a project

to develop the site of an old prison in the

heart of Kuala Lumpur, is raising a M$770m

debut loan.

CIMB Bank and Maybank are the

mandated lead arrangers, bookrunners and

underwriters. The loan is split into two

five-year tranches of M$150m and M$450m,

a M$120m six-year portion and a M$50m

bank guarantee facility. The average life is

4.9 years.

All tranches pay interest margins

of 175bp over the cost of funds for

participating lenders.

Banks are invited to join as MLAs with

M$200m or above for upfront fees of 95bp

for a top-level all-in pricing of 194.39bp,

while lead arrangers joining with M$100m–

$199m earn 80bp for an all-in of 191.33bp.

Arrangers committing M$50m–$99m

receive 70bp for an all-in of 189.29bp.

Syndication is slated to close in April.

Funds go toward developing the Pudu

Prison site, which was an old colonial-era

jail and comprises 19.4 acres of land with

a total gross build-up area of 6.7 million

square feet and a gross development value

of M$8.7bn.

BBCCD is a joint venture between

Kuala Lumpur-listed developer Eco World

Development Group Bhd (40%), UDA

Holdings Bhd (40%), another Malaysian

property company, and Employees

Provident Fund of Malaysia (20%).

The project will comprise a retail mall,

an entertainment hub, blocks of serviced

apartments, a four-star hotel and one strata

office.

S034334/5-16

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